A business law blog published by the business lawyers at AttorneyBritt - Gary L. Britt, CPA, J.D. Commentary and information regarding the laws and regulations applicable to individuals, corporations, partnerships, and limited liability companies (LLCs); as they relate to the myriad of business transactions, contracts, and agreements every business owner, shareholder, member, physician, and/or health care provider must consider.

Monday, September 26, 2016

The Internal Revenue Service announced it
plans to begin private collection of certain overdue federal tax debts
next spring and has selected four contractors to implement the new
program.

The new program was authorized by Congress
last December.

As a
condition of receiving a contract, these agencies must respect taxpayer
rights including, among other things, abiding by the consumer protection
provisions of the Fair Debt Collection Practices Act.

The IRS has
selected the following contractors to carry out this program:

CBE Group 1309 Technology Pkwy Cedar Falls, IA 50613

Conserve 200 CrossKeys Office park Fairport, NY 14450

Performant 333 N Canyons Pkwy Livermore, CA 94551

Pioneer 325 Daniel Zenker Dr Horseheads, NY 14845

These private collection agencies will work on accounts where
taxpayers owe money, but the IRS is no longer actively working their
accounts. Several factors contribute to the IRS assigning these accounts
to private collection agencies, including older, overdue tax accounts
or lack of resources preventing the IRS from working the cases.

The IRS will give each taxpayer and their representative written
notice that their account is being transferred to a private collection
agency. The agency will then send a second, separate letter to the
taxpayer and their representative confirming this transfer.

Private collection agencies will be able to identify themselves as
contractors of the IRS collecting taxes. Employees of these collection
agencies must follow the provisions of the Fair Debt Collection
Practices Act and must be courteous and respect taxpayer rights.

The IRS will do everything it can to help taxpayers avoid confusion
and understand their rights and tax responsibilities, particularly in
light of continual phone scams where callers impersonate IRS agents and
request immediate payment.

Private collection agencies will not ask for payment on a prepaid
debit card. Taxpayers will be informed about electronic payment options
for taxpayers on IRS.gov/Pay Your Tax Bill. Payment by check should be
payable to the U.S. Treasury and sent directly to IRS, not the private
collection agency.

The IRS will continue to keep taxpayers informed about scams and
provide tips for protecting themselves. The IRS encourages taxpayers to
visit IRS.gov for information including the “Tax Scams and Consumer Alerts” page.